REVEALED: Top suburbs for property price growth
BOAMBEE has been named the star performer in the Coffs Coast property market topping a list of 20 suburbs on the Mid North Coast for value growth over the past 25 years.
A housing trends' report has found Boambee has experienced extraordinary growth in its median house price from $65,000 to $705,000 over the last 25 years, an average annual change of 10 per cent; well above Sydney's average of 7.6 per cent.
Houses in Crescent Head took second position, with the median house price increasing from $83,500 to $579,000, or 8.1 per cent annually.
The revelation has come from a landmark joint study by Aussie Home Loans and CoreLogic.
Chief Executive Officer of Aussie, Mr James Symond, said: "It's not a big surprise that attractive suburbs on the Mid-North Coast, including Coffs Harbour and Clarence Valley, dominate the top 20."
Mid-North Coast Top 20 Suburbs for Value Growth
"Our report clearly shows that housing continues to grow as Australia's largest asset class, with home owners in seven of the top 20 suburbs achieving annual growth of seven per cent or higher over the last 25 years," he added.
The average owner occupier loan size in New South Wales has increased approximately in line with property values, with the typical loan size now $445,500 or 6.4 per cent per annum higher since 1993.
Despite loan sizes increasing close to the rate of property values, average mortgage rates are near their record low levels of the 1960's leading to improved mortgage serviceability.
"However, housing affordability is still a challenge for many because household incomes haven't kept pace with rising property prices. This is demonstrated by New South Wales' shrinking first home buyer numbers from 18.5 per cent in 1993 to 14.2 per cent in 2018, while investors have taken a far bigger slice of the pie, up from 18.8 per cent to 50.2 per cent over the same period," he added.
"The last 25 years has seen five property cycles and we expect the pattern of cyclic growth to continue. If the changing face of residential property and staggering growth of technology we have seen over the last 25 years continues, it's likely the next 25 years will produce even greater change," Mr Symond said.